Renovate to add value to your property

When preparing to sell a property, many homeowners consider renovating first so that they get the best sales price for their home. But how do you know whether to renovate and what additions will add the most value to your Gold Coast home?

Do you need to renovate to sell?

The quick answer to this question is, possibly. Before you can decide whether to renovate or not, you will need to do some research. Have a look at the recent house sales in your area to see if they have features yours is lacking. Elements such as a walk-in wardrobe or ensuite bathroom are highly sought after in most areas and these may be worthwhile to additions to your home.

If you do decide to renovate take your time to consider who your ideal buyer is. Analyse the demographics of your area and what additions or renovations would most appeal to them. Families, for example, might appreciate a fully fenced yard and retirees might like an easy-care lawn.

Don’t overcapitalise

Whatever renovations you decide on, it is important not to overcapitalise. You may be able to get away with small renovations like repainting or re-carpeting.

Remember you are not renovating for yourself but to maximise your resale value. Your upgrades should have mass appeal. A well thought out and executed renovation could increase your property value by 10%. So aim to spend no more than 5% of your property value on additions to reap the rewards.

Renovations that add value

Not all additions are equal when it comes to adding value, however. Some renovations give you more bang for your buck.

Modern, open-plan kitchens are currently in demand. It might be worth investigating the cost of knocking a wall down to open up your kitchen. If your cupboards are a little worse for wear consider purchasing new ones. Retailers like Ikea, Bunnings and Freedom offer cost-effective cabinetry options as well as kitchen benchtops in a range of materials.

According to the Housing Industry Association, Australian homes have an average of 2.6 bathrooms. Add a new bathroom or upgrade your current ones with quality fittings but keep an eye on the costs. Luxury bathroom fittings can be quite expensive so know your target market and stick to your budget.

Giving your home a new coat of paint can provide a much-needed facelift and deliver a great return on investment. Painting the exterior and/or the roof can enhance your property’s street appeal, enticing buyers into your home. Similarly, a new front door can make your house appear more inviting.

Spending a bit of time and money on your outdoor areas is another area where you can increase property value. There is a trend towards outdoor living, especially on the Gold Coast where the climate is agreeable most of the year.

Renovations and additions to avoid

As long as you do your research and do not overcapitalise, you are likely to add value to your property. That said, adding a swimming pool is perhaps one of the few areas where the cost usually outweighs the return.